Question

In a manufacturing industry, breakeven point occurs, when the

• A. Total annual rate of production equals the assigned value
• B. Total annual product cost equals the total annual sales
• C. Annual profit equals the expected value
• D. Annual sales equals the fixed cost

Hint:

At breakeven, total revenue equals total cost (no profit, no loss).

Answer 1

The Correct Option is B

The breakeven point is where there is no profit or loss, i.e., total cost equals total revenue (sales).